Analysis of factors affecting audit delay in manufacturing and financial companies listed on IDX

Abstract

The study aims to identify and analyze the factors affecting the audit delay. The study includes a quantitative study using secondary data obtained from the company’s financial statement. The study’s population constituted the entire manufacturing and finance companies listed on the Indonesia Stock Exchange during the year 2018-2019. The sample is collected by using purposive sampling over the listed companies in the criteria that the company publishes the audited financial report as of December 31 and also shows the data needed in the study. The sample which has met the criteria is 510 companies and analyzed by multiple linear regression analysis. The results show that the industrial type and complexity of the company have a positive influence on the audit delay, the auditor opinions, the reputation of Public Accounting Firm and the company’s size have a negative impact on the audit delay, while the profitability does not affect the audit delay.

Determinant Audit Delay In Indonesia Islamic Banks

“…Research (David M & Butar, 2020) found that the completion of the audit will be long enough if the company's branches are many because external auditors must be careful in conducting examinations of consolidated financial statements. Research (Muna & Lisiantara, 2021) found that the number of branches is an indicator of the complexity of the inspection object, so it will affect audit delay. Research (Dwiyanti et al, 2022) found that the number of branches determining the audit scope and scope will affect audit delay.…”

Implications of Company Financial Performance and Independent Auditor Reputation on Audit Delay

“…If the company's profit is high, the auditor will request a financial statement audit to be carried out more quickly (Indriani, 2020). High profitability levels demand faster financial audits (Muna & Lisiantara, 2021). Therefore, companies with high liquidity tend to report their finances quickly (Nuraini et al, 2023).…”

Financial Ratio, Reputation of Public Accountant Office and The Timeliness of Audited Financial Statements

“…Concerning agency theory, if the company's data has been audited by a KAP affiliated with the Big Four KAPs, and has a good reputation and quality, it will make service users trust the auditor more, so management will not replace it. Studies Wijasari & Ary (2021), David Butar (2020), and Muna & Lisiantara (2021) report that KAP's reputation negatively influences audit report lag. H4: KAP reputation has a negative effect on audit report lag.…”

“…With a good reputation owned by the KAP, it will make it carry out its duties professionally, assist the company in completing audit reports on time and reduce the possibility of audit delays. Studies Wijasari &Ary (2021), andMuna &Lisiantara (2021) explain that KAP's reputation negatively influences audit report lag. Meanwhile, according to research from Armand et al (2020) explaining, the reputation of KAP does not affect audit report lag.…”